The government of Kyrgyzstan amends the Budget Code to increase the maximum allowable ratio of the state debt to GDP. The head of the International Cooperation Department of the Ministry of Finance Bakyt Sydykov told.

According to him, the Parliament is considering the amendments. They propose to set new budget rules. So, for example, the treasury deficit cannot be higher than 3 percent of GDP.

The Ministry of Finance proposes to fix that the state debt cannot be above 70 percent of GDP.

Previously, the law set the limit value of the state debt in GDP at 60 percent. Since 2017, Kyrgyzstan has abandoned the wording that the level of the state debt could not exceed 60 percent of GDP. The country introduced the Budget Code, which prescribed a formula for the permissible debt value. The then Finance Minister Adylbek Kasymaliev argued that Kyrgyzstan could borrow other $ 500 million. This time, the state debt limit is proposed to be increased by other 10 percent.

Recall, as of February 28, the state debt amounted to $ 4.4 billion. At least $ 3,885 billion is the country’s external debt.